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What is A Group Health Insurance Plan?

Health InsuranceThe type of insurance coverage is practically one of the major elements that employees consider when staying in a certain company. Therefore, it is crucial that one with the best coverage be offered since, not only does it improve retention percentage, but attracts new talents as well.

Insurance companies usually recommend affordable plans. Thus, they opt to offer a group health insurance wherein more than half of the American employee population is covered under. In this type of policy, employers are the ones to acquire and shoulder 50% or more of the required total monthly contribution. And since it is more about getting coverage due to a common cause than a necessity, it would still cost less than purchasing individual plans. This makes it a win-win situation for both parties. This is also why it is currently considered as the most popular benefit a company can offer.

A “POP (Premium Only Plan) allows members to make their share of contribution on a pre-tax basis. This is the type of plan most employees in the U.S is covered under. They are not taxed for company contribution as well which makes this heavily subsidized in terms of taxation.

Are All Policies applicable to all types of companies?

Based on laws that govern in a particular state, health insurance policies may actually vary. Moreover, the comprehensive health care reform law enacted in March 2010 (Affordable Care Act (ACA) also enabled the federal government to lay down several regulations on such insurance plans.

The same applies to those with self-acquired plans or those working in small or minor companies. Hence, there are differences in the laws for the coverage offered and the premium when working in a small company, which is considered to have less than or equal to 50 full-time employees and a large company with larger number of heads mentioned. This leads us to the conclusion that not all policies are the same.

Lost Group Insurance Coverage

Thanks to the federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), individuals who have lost access to group insurance due to job loss, incidents, or any other reasons, may still be allowed to keep their group coverage for a certain time. Most are even given the privilege to enjoy unlimited group coverage.

Though proven beneficial, this may not be applicable in some states wherein COBRA does not exist.  However, better options that offer ample benefits are provided.  Consider going through the benefit summary booklet provided by your employer for more information with regard to how this may affect you. La Fayette, CA

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Things You Need to Know About Group Health Insurance Plans

Things You Need to Know About Group Health Insurance Plans

Most companies in the United Stated, small or big corporations, employers offer group health insurance to their employees as one of the many benefits they can provide. This type of insurance is much known and in demand as it is being provided to more than half of the population of the American workers.

Insurance Feb 2018 (1)What are the Advantages?

On most health insurance policies that have been given to employees, it is usually half or more of the required of total monthly contribution are being paid by the employers which is apparently very advantages on employees part considering the benefits they are getting. And in the United States, most employees are covered under “POP” plans, or Premium Only Plans which allows them to have their health insurance contribution fall as pre-tax. Moreover, the employer’s contribution’s taxes are not being paid by their employees since these taxes are covered by POP and this makes these plans heavily subsidized in taxation.

Getting group insurance plans is very advantageous for both on employers and employees. It has very affordable rates if we are to compare it to any individual insurance. This is why even though it is not that necessity for most employees, most American companies purchasing the group insurance plans since it is resulting a win-win results for both employees and employers.

Good employees are talents and assets to the company. This is why employee retention is very significant factors in a company.  And that being said, employers are likely to offer great employees benefits to their best workers and perhaps it is proven as one of the most effective ways to retain best employees. This is also another way of attracting new talents to most companies.

Above of all the advantages that have mentioned is that, having group insurance plan leads to good outcome, preventing unplanned leaves and improved workers.

Are All Insurance Plans the Same?

Different insurance policies have similarities but definitely have differences. One of these reasons is the differences of laws in each and every state that regulate these policies. In addition, the federal government also affects the policies through Affordable Care Act (ACA). Federal government has been implementing regulation to such insurance plans. This also affects those individuals who purchase their own policies, especially those employees working in small companies. There are things that are not the same between working in small companies and in bigger one.

A company that has less than 50 fulltime employees are considered as small business company, while the one with bigger number of employees are large business types such as large enterprise or a corporation. This only means that the laws regulating the company insurance coverage varies depending on its business type as well.

When Losing Access to the Group Insurance Coverage.

Some of the reasons why a person could lose an access to his or her insurance coverage are job loss, divorce and such other similar reasons, however group insurance coverage can still be kept within a certain period of time. This is one of the good thing about group insurance compare to other insurances. Moreover, some can even extend their insurances as long as the group insurance is existing. Thanks to the federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). However, COBRA doesn’t exist in all the states (and doesn’t apply to all employers), but in some of the states it doesn’t, there are actually better options that offer more generous benefits.

So better to be certain and have enough knowledge about your insurance policy once your employer have provided you the benefit summary reference.San Jose Feb 2018